ARMSTRONG, IA (Northwestiowanow) — Multiple financial and oversight issues have been identified following a state review of the City of Armstrong for fiscal year 2025.

In a release issued Friday June 19th, State Auditor Rob Sand reported 18 findings related to the handling of taxpayer funds for the period from July 1, 2024 through June 30, 2025.

The report found 14 of those findings were repeat issues from the previous year, raising concerns about the City’s progress in addressing ongoing deficiencies.

Among the most serious concerns, auditors cited a lack of financial oversight and internal controls, including insufficient separation of duties among staff, which increases the risk of errors and potential misuse of funds.

The City was also cited for spending beyond its approved budget in multiple areas and maintaining deficit balances in certain funds.

Auditors additionally flagged issues with financial reporting, including an annual financial report that understated long-term debt by more than $315,000.

Other findings included the payment of sales tax and credit card finance charges despite the City’s tax-exempt status, fund transfers made without proper City Council approval, and a lack of documentation for some financial reports and meeting minutes.

The audit also raised concerns involving payroll practices, debit card use, and bonding levels for city officials.